The opening introduction by Levin seems to me to be an incredible exaggeration of Hayek’s importance, but anyway some other comments also occur:
(1) What strikes me, above all, is that Hayek just sounds like a mainstream neoclassical in his emphasis on the role of prices: what is this but the Walrasian neoclassical view of an economy with a market-clearing price vector that converges to general equilibrium? In other writings at this stage of his career, Hayek was expressing a disillusionment with general equilibrium theory, yet here he just repeats that same tired old neoclassical equilibrium myths.
(2) This interview was conducted in the early years of Thatcher (Prime Minister of the UK from 1979–1990), who appealed to Hayek as one of her economic influences, though in practice her policy owed more to monetarism than Austrian economics.
(3) Hayek’s prescription of high unemployment and bankruptcy as a solution to stagflation evokes the worst nonsense of his liquidationism.
(4) Hayek’s discussion of his conception of liberty (from 19.00) is of some interest.
(5) Some of my posts relevant to this interview:“Hayek on the Flaws and Irrelevance of his Trade Cycle Theory,” June 29, 2011.
“Did Hayek Advocate Public Works in a Depression?,” September 25, 2011.
“Hayek and the Concept of Equilibrium,” September 20, 2011.
